Century Aluminum Company (CENX)
Interest coverage
| Dec 31, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 121,400 | 13,300 | 6,200 | 31,800 | -27,900 | -55,200 | -204,000 | -150,200 | -69,200 | 22,600 | 184,200 | 66,000 | 2,300 | -75,900 | -113,000 | -80,500 | -69,100 | -47,600 | -39,100 | -66,400 |
| Interest expense (ttm) | US$ in thousands | 30,000 | 37,600 | 36,000 | 35,500 | 35,000 | 33,700 | 30,700 | 29,300 | 27,600 | 26,400 | 28,400 | 30,400 | 32,700 | 35,500 | 34,200 | 31,600 | 28,300 | 24,400 | 23,800 | 22,900 |
| Interest coverage | 4.05 | 0.35 | 0.17 | 0.90 | -0.80 | -1.64 | -6.64 | -5.13 | -2.51 | 0.86 | 6.49 | 2.17 | 0.07 | -2.14 | -3.30 | -2.55 | -2.44 | -1.95 | -1.64 | -2.90 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $121,400K ÷ $30,000K
= 4.05
Century Aluminum Company's interest coverage ratio has exhibited significant fluctuations over the periods provided.
The interest coverage ratio was negative for most of 2019 and continued to be negative in the first half of 2020, indicating that the company's earnings were insufficient to cover its interest expenses during these periods.
In the second half of 2020 and throughout 2021, there was a gradual improvement in the interest coverage ratio, with the ratio turning positive by the end of September 2021. This positive trend continued into 2022, reaching a high of 6.49 in March 2022, indicating that the company's earnings were more than sufficient to cover its interest expenses.
However, starting from June 2022, the interest coverage ratio declined sharply, becoming negative again by the end of 2022 and remaining negative through the first half of 2023. This suggests that the company once again faced challenges in generating enough earnings to cover its interest payments.
By the end of 2023, the interest coverage ratio turned positive once more and continued to improve into 2024, reaching 4.05 by December 31, 2024. This upward trend indicates an improvement in the company's ability to cover its interest expenses with its earnings.
Overall, Century Aluminum Company experienced varying levels of financial health in terms of its ability to cover interest expenses during the period under review, with significant fluctuations in the interest coverage ratio reflecting changes in the company's profitability and financial performance. It is essential for stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations.
Peer comparison
Dec 31, 2024